ACADEMIC YEAR 2022-2023

CPA400 AUDIT AND ASSURANCE

4 ECTS

MAMTA DAGAR

COURSE DESCRIPTION

This course introduces students to the principles of external auditing and other
assurance services. Both theoretical and practical aspects of the audit process will
be considered including recent developments in the organisation of the profession,
the regulatory framework governing practitioners and factors affecting the future
evolution of the practice of auditing and other assurance services.

COURSE OBJECTIVES

The aims of this course are:

To provide students with an understanding of the nature of the function of auditing

and other assurance services and the principles of the related processes.

Exhibit and be able to discuss understanding of ethics and social responsibility.

Apply Critical Thinking Skills by solving problems requiring quantitative and/or
qualitative analysis. Apply and demonstrate the accounting knowledge and skills in
Auditing. Program learning outcomes define the knowledge, skills, and abilities
students are expected to demonstrate upon completion of an academic program.
These learning outcomes are regularly assessed to determine student learning and
to evaluate overall program effectiveness.

COURSE OUTCOMES

Learning Outcomes
On successful completion of this course, candidates should be able to:

• Explain the concept of audit and assurance and the functions of audit, corporate
governance, including ethics and professional conduct.
• Demonstrate how the auditor obtains and accepts audit engagements, obtains an
understanding of the entity and its environment, assesses the risk of material

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misstatement (whether arising from fraud or other irregularities) and plans an audit of
financial statements
• Describe and evaluate internal controls, techniques and audit tests, including IT
systems to identify and communicate control risks and their potential consequences,
making appropriate recommendations. Describe the scope, role and function of
internal audit.
• Identify and describe the work and evidence obtained by the auditor and others
required to meet the objectives of audit engagements and the application of the
International Standards on Auditing (ISAs)
• Explain how consideration of subsequent events and the going concern principle can
inform the conclusions from audit work and are reflected in different types of auditor’s
report, written representations and the final review and report.
• Demonstrate employability and technology skills

COURSE CONTENT

SESSION 1: AUDIT STANDARDS OVERVIEW AND INTRODUCTION TO AUDIT

The first session we will just see the standards of Audit and some fundamentals

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 2: INTRODUCTION TO ASSURANCE AND FINANCIAL STATEMENT

AUDITING

In this session we will recap the basics of assurance and auditing where we will
see:

The role of auditing, introduction to assertions, difference between auditing and

assurance, overview of the financial statement audit process, fundamental
concepts, different types of audit reports.

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 3 THE FINANCIAL AUDIT ENVIRONMENT

In this session we will discuss important Auditing Standards (ISA), The general principles and
responsibilities of an Auditor, Risk Assessment and Response to Assessed Risk, Audit Evidence
which includes External confirmations, Audit Sampling, Related Parties, Subsequent Events, Going
Concern Principles

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FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 4: RISK CONCEPT AND RISK ASSESSMENT AND RISK MODELS

In this session the objective is to understand what audit risk is, to understand the
risk model, limitations of audit risk, misappropriation of assets and to understand
the auditor’s process and financial statement frauds.

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 5: INTERNAL CONTROL IN A FINANCIAL STATEMNET AUDIT

We will have Midterm based on what we have learn in past 4 weeks

FORUM AND ASSIGNMENTS

Midterm Practice Quizzes

SESSION 6: MIDTERM

FORUM AND ASSIGNMENT S

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 7: AIMS OF CONTROLS AND ASSERTIONS

In this session we will see Accounting Standards in Focus, Nature of Inventories, Accounting for
Inventories and Assigning Costs to Inventory on Sale Disclosure At the end of this class, you should
be able to understand the nature of inventories and understand how to measure inventories and apply
FIFO and weighted average cost

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar

SESSION 8: EVIDENCE AND DOCOUMENTATION

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We will see the phases of an audit that relate to audit planning , preliminary
engagement activities, the engagement letter, and we will go through important
internal audit function

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 9: AUDIT PLANNING AND TYPES OF AUDITS

In this session we will see how to Standardize financial information for comparisons, evaluate current
operations and Compare performance with past performance

Compare performance against other firms or industry standards and study the efficiency of operations

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

SESSION 10 AUDIT PROCEDURES

In this session we will learn to explain significant classes of transactions (scots)

and significant disclosure processes

► Identify the critical path of SCOTs and significant disclosure processes

► Define and give examples of what can go wrongs (WCGWs)

► Define and give examples of various types of controls

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

UNIT /SESSION 11: REPORTS ON AUDITED FINANCIAL STATEMENTS

In this session we will go through types of audit reports like qualifies report,
disclaimer and adverse and an overview of an audit opinion

FORUM AND ASSIGNMENTS

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Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

UNIT /SESSION 12: PROJECT PRESENTATION OR INDIVIDUAL ASSIGNMENT

You are required to make and present a project presentation of the case study provided during the
course.

FORUM AND ASSIGNMENTS

Read: Assigned textbook chapters. Participate in the Introductions and Discussion Forum. Complete
the test/quiz assigned each week. Participate in the weekly Webinar.

UNIT /SESSION 13 – FINAL EXAM

Final Exam

COURSE EVALUATION

ASSESSMENT METHODOLOGY

Attendance/Participation to class discussion: Each student is expected to be prepared to discuss

every week’s topic, as noted in the Schedule section of the Syllabus. The preparation must include
the readings for the week as well as, optionally, current articles and business news related to the
topic. Each student is expected to bring a valuable contribution to each week’s discussion. The
contribution could be based on textbook material, case studies, current news, or personal knowledge
and/or experience. Each week, at least one discussion forum will be placed in the “Forum” area to
help you become familiar with each topic/module and assess your attendance/participation. Final
Exam, midterm exam and weekly quizzes: The exams and tests entail a number of multiple-choice
accounting calculations based on textbook chapters and material covered in class. Webinar
participation is a merit grade.

RUBRICS

General rubrics for participation, ,essays, group work are available in the course platform.

COURSE WEIGHTINGS

FORUM PARTICIPATION 20%

Forum Week 1 – Not applicable –I

Forum Week 2 -
Forum Week 3 -
Forum Week 4-
Forum Week 5- Not applicable- Midterm exam
Forum Week 6-
Forum Week 7-
Forum Week 8-

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Forum Week 9 - Not applicable – Final exam review

Forum Week 10 - Not applicable – Final exam

ASSIGNMENTS 35%

Assignment 1- 5%
Assignment 2- 10%
Assignment 3- 10%
Assignment 4- 10%

MIDTERM EXAM 15%

FINAL EXAM 30%

THEORETICAL MODELS

List of theoretical models that you will be using during the course The accounting cycle, financial
statements including the income statement, balance sheet, statement of cash flows, and statement of
shareholder,s equity, transactions in journal statements, journal entries, adjusting and closing entries,
trial balance work sheet, receivables, payables, notes and interest, inventories LIFO & FIFO, depreci-

ation

BIBLIOGRAPHY

READINGS:

AUDITING & ASSURANCE 8 T H EDITION

By timothy louwers and penelope bagley and allen blay and jerry strawser and jay
thibodeau

For full details please refer to the reading list. Gray, i. And s. Manson, the audit
process. (london: thomson, 2015) 6th edition [isbn 9781408081709]

Porter, b., j. Simon and d. Hatherly, principles of external auditing. (chichester: john
wiley & sons, 2014) fourth edition [isbn 9780470974452].

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